First Half of the Year Delivers Favourable Operating Results and Important Steps Towards Re-Starting Construction on the Expansion Project

Trans Mountain Corporation (TMC) today posted to its website the company’s financial statements and associated management report for the three and six-month periods ending June 30, 2019. The company’s financial results were also included in Canada Development Investment Corporation’s consolidated quarterly financial statements. 

TMC recorded net income of $74.7 million and Adjusted EBITDA of $49.2 million for the three months ended June 30, 2019 and net income of $87.1 million and Adjusted EBITDA of $97.7 million for the six months ended June 30, 2019.  Total throughput on the pipeline for the six month period averaged approximately 314,000 barrels per day and throughput to Washington State on the Puget pipeline averaged approximately 200,000 barrels per day for the period.

“Trans Mountain’s second quarter performance built on the strong start to the year both operationally and financially. Our health and safety measures continued to outperform industry rates, a testament to the strong culture of safety responsibility within the organization,” said Ian Anderson, President and CEO of Trans Mountain Corporation. “The Government of Canada’s approval of the Trans Mountain Expansion Project in June brought us one step closer to re-starting construction this year.  We expect to begin mobilizing and hiring in British Columbia and Alberta later this summer, once the necessary approvals and requirements are in place.”

On June 18, 2019 the Governor in Council approved the Expansion Project and directed the NEB to issue a new Certificate of Public Convenience and Necessity.  On July 19, 2019, the NEB announced that its decisions and orders issued prior to the August 2018 Federal Court of Appeal decision will remain valid unless the NEB determines that relevant circumstances have substantially changed. Trans Mountain is prepared to re-start construction activities this summer. Capital expenditures on the Expansion Project are expected to total approximately $1.6 billion in 2019. Additional expenditures of approximately $86 million are expected on other capital projects and asset retirements, up from our March forecast of $58 million due to incremental work on pump station optimization on TMPL.

See the full financial statements and management report documents here

See Canada Development Investment Corporation’s Quarterly Report here.

Non-GAAP measures

We make use of certain financial measures that do not have a standardized meaning under U.S. GAAP because we believe they improve management’s ability to evaluate our operating performance and compare results between periods. These are known as non-GAAP measures and may not be similar to measures provided by other entities. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and equity AFUDC) is a non-GAAP measure we use to evaluate our operating performance absent the impact of financing decisions, non- cash depreciation and amortization, and non-cash equity AFUDC.

AFUDC (Allowance for Funds Used During Construction) is an amount recognized by rate-regulated entities to reflect a return on the equity and debt components of capital invested in construction work in progress.

Comparable measures

This Report reflects financial results for the three and six-month periods ending June 30, 2019. As TMC was incorporated on May 28, 2018 and acquired the Trans Mountain Entities on August 31, 2018, comparable prior year figures are not available.